Zomato IPO share listing LIVE: Zomato shares made a strong stock market debut on Friday, listing at Rs 115 apiece on BSE. Zomato shares surged 51.32 per cent or Rs 39 from IPO price of Rs 76. The total market capitalisation of this online food ordeing platform at listing stood at Rs 90,219.57 crore. The Rs 9,375-crore IPO was sold in a price band of Rs 74-76 a share during 14-16 July. The mega public issue of the food-tech unicorn saw a subscription of over 38 times, receiving a robust response from all pockets of investors. The issue had received bids for over 2,751 crore equity shares against the 71.92 crore shares on offer. Zomato’s IPO is the first Indian internet unicorn to make its stock market debut. This much-awaited public issue is the largest to hit Dalal Street since SBI Cards and Payment Services’ Rs 10,341-crore IPO in March 2020.
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Zomato shares surged nearly 53 per cent or Rs 40 to Rs 116 apiece on NSE, while it saw listing at Rs 115 on BSE on debut day
Zomato shares saw a listing at over 50 per cent or Rs 39 premium over IPO price of Rs 76. Stocks made a strong Dalal Street debut at Rs 115 on BSE on Friday. The total market capitalisation at listing stood at Rs 90,219.57 crore.
Zomato shares list at 51.32% premiun over IPO price, at Rs 115 apiece on BSE
Zomato IPO was sold at an upper band of Rs 76 per share during 14-16 July 2021, and saw a subscription of over 38 times.
Zomato shares set to list on BSE, NSE soon, analysts expect a three-digit listing price.
Zomato has been able to reduce its losses in FY2021 despite a degrowth in topline. We expect losses to reduce further over next couple of years due to rebound in growth and improving unit economic. Given strong delivery network, high barriers to entry, expected turnaround and significant growth opportunities in tier-II and tier-III cities, we believe that Zomato will command a premium to global peers. Angel Broking
Zomato grey market premium was stable, just ahead of shares listing. The shares in the grey market were seen trading at Rs 105 apiece, according to the people who deal in shares of unlisted companies.
We are going to relentlessly focus on 10 years out and beyond, and are not going to alter our course for short term profits at the cost of long term success of the company, Deepinder Goyal said in a blog.
The tremendous response to our IPO gives us the confidence that the world is full of investors who appreciate the magnitude of investments we are making, and take a long term view of our business, says Deepinder Goyal
Today is a big day for us. A new Day Zero. But we couldn’t have gotten here without the incredible efforts of India’s entire internet ecosystem. Jio’s prolific growth has set all of us up for unprecedented scale. Flipkart, Amazon, Ola, Uber, Paytm – have also over the years, collectively laid the railroads that are enabling companies like ours to build the India of the future, Deepinder Goyal said ahead of Zomato listing
The future looks exciting. I don’t know whether we will succeed or fail – we will surely, like always, give it our best, Deepinder Goyal tweets ahead of Zomato listing
If Zomato does not continue to innovate and further develop its platform or its platform developments do not perform, or it is not able to keep pace with technological developments, it may not remain competitive and its business and results of operations could suffer. Failure to detect and deal effectively with any fraud perpetrated and fictitious transactions conducted on ZL’s platform could harm the business. HDFC Securities
Zomato will invest in new products, technologies, and features for the benefit of the customers. It is in the process of rolling out nutraceutical products on its platform. It continues to innovate to offer higher personalization and new experiences to its customers while continuing with its sharp focus on machine learning to achieve this objective. Axis Securities
With the improved sentiments in primary and broader market I expect Zomato may list in three digits. However, for long-term view one must have to keep continuous track of performance as this is not an ‘Invest and Forget’ kind of story. Zomato’s listing will set a benchmark for upcoming start-up IPOs. Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares
Zomato shares were quoting at a premium of Rs 29 apiece just ahead of listing, from Rs 19, earlier this week. The shares were trading at Rs 105 apiece, implying a premium of over 38 per cent over the IPO price of Rs 76, according to the people who deal in shares of unlisted companies.
Zomato has a history of net losses and it anticipates increased expenses in the future. Zomato may not be able to sustain its historical growth rates, and its historical performance may not be indicative of its future growth or financial results. If it fails to retain its existing restaurant partners, customers or delivery partners or fail to add new restaurant partners, delivery partners or customers to our portfolio in a cost-effective manner, its business may be adversely affected. HDFC Securities
Investors looking to invest in Zomato should bear in mind that it is a loss-making company and the company has clearly indicated that it will continue to report losses over the medium-term. INDmoney said in a report
At the higher end of the price band, Zomato IPO is roughly priced at a Mcap/ Sales of 28 times (based on FY21 data). This is much higher than its global peers DoorDash and DeliveryHero. As the online delivery space remains under-penetrated, Zomato is expected to command a higher valuation in India (scarcity premium). INDmoney said in a report.
Zomato may not be able to sustain historical growth rates and historical performance may not be indicative of future growth or financial results. Almost all aspects of business, in particular food delivery, have experienced rapid growth in recent year. To grow business, the company will need to work with existing and an increasingly large number of new restaurant partners, delivery partners and other participants in network efficiently and establish and maintain mutually beneficial relationships with them. Axis Securities
Ace investor Rakesh Jhunjhunwala is not looking to jump on the new-age technology IPO bandwagon but believes there is more opportunity in metal stocks and domestic banks. Speaking at Motilal Oswal AMC’s Global Partner Summit, the big bull said that he is bullish on every aspect of the Indian economy and domestic markets except the new-age internet companies that have begun their journey towards Dalal Street with Zomato’s IPO last week. Apart from Zomato, the financial services behemoth Paytm has also started mapping its stock market journey, filing the draft IPO papers last week.
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Zomato IPO share allotment has been finalised on Thursday, 22 July 2021. The online restaurant discovery and food delivery platform IPO, which was launched last week, saw strong demand from investors, subscribing 38.25 times on the final day. In the grey market on Thursday, Zomato shares were quoting at a premium of Rs 23.75 apiece, from Rs 19, earlier this week. The shares were trading at Rs 99.75 apiece, implying a premium of 31.25 per cent over the IPO price, according to the people who deal in shares of unlisted companies.
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Online food ordering platform Zomato, which last week closed its mega initial public offering raising over Rs 9,000 crore, will list on the stock exchanges on Friday, days ahead of its earlier schedule of the next week. “Effective from Friday, July 23, 2021, the equity shares of Zomato Limited shall be listed and admitted to dealings on the Exchange in the list of ‘B’ Group of Securities,” the BSE said in a notice.
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